Question : Regulations for Private Lockers

(a) whether there is any law to regulate the locker services offered by private sector in the country, if so, the details thereof and if not, the reasons therefor;

(b) whether the Government proposes to enact a new law to regulate the private locker sector, if so, the details thereof along with the time by which it is likely to be implemented in the country and if not, the reasons therefor;

(c) whether the Government has recovered black money from the service providers of private lockers during the last four years and if so, the details thereof, State/year-wise; and

(d) the details of the action taken against the guilty people?

Minister of State in the Ministry of Finance


(a) and (b): With regard to regulation of locker services offered by the private sector, Reserve Bank of India (RBI) has informed that as per provisions contained in section 6(1)(a) of the Banking Regulation Act, 1949, a banking company may engage in providing of safe deposit vaults, and that RBI has issued instructions to all Scheduled Commercial Banks on "Extension of Safe Deposit Locker / Safe Custody Article Facility and Access to Safe Deposit Lockers / Return of Safe Custody Articles by Banks" vide circular dated April 17, 2007.

Ministry of Corporate Affairs and Department of Revenue have furnished nil reports in this regard.

(c) and (d): As per input received from the Central Board of Direct Taxes (CBDT), year-wise details of the total seizure made by the Income Tax Department (ITD) during the last four financial years are at Annex. CBDT has apprised that details of locations from where seizures have been made are not centrally maintained. With regard to action taken against guilty people, CBDT has informed that ITD conducts search and seizure operations based on credible information of tax evasion regarding persons searched, and during search and seizure operations ITD seizes unaccounted/undisclosed assets of the persons searched. Further, prosecution proceedings before competent courts are also launched in suitable cases by ITD.
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